Durbin's alternative test is valid even if the explanatory variables are strictly exogenous.
Answer the following statement true (T) or false (F)
True
Rationale: FEEDBACK: Durbin's alternative test is valid even if the explanatory variables are strictly exogenous.
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Economic growth is enhanced by
A) free international trade. B) limiting international trade so that the domestic economy can prosper. C) discouraging saving, because increased saving means less spending. D) ignoring incentive systems. E) increasing welfare payments to the poor so they can afford to buy goods.
As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
A. has declined. B. has increased. C. has remained unchanged. D. cannot be compared.
Answer the following questions:
a. If aggregate expenditures falls by $5 million, and the MPC is 0.80, explain the process that will drive the economy to a new equilibrium level. b. What will be the final result of this initial change?
Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day
If the firm hires the 9th worker, what will happen to the average product of labor? Explain.